When it comes to payment technology, the grass is a little green in America’s legal marijuana trade – but a new tech partnership is looking to change that.
Payment provider Global Payout is teaming up with CannaTrac, a logistics company that specialises in issues relating to the trade in medical and recreational marijuana, including compliance, privacy, technology and banking.
Despite being a multi-billion dollar industry, cannabis entrepreneurs often struggle to secure financial services or partners. In the US, laws surrounding the use and sale of the drug vary from state to state, meaning that many national and global banks are wary of taking payments in one area that may place them on the wrong side of the law if they are later channelled through another.
To tackle this, Global Payout has created a closed-loop payments system that it says will give the industry a low-cost way to make transactions and allow them to be more responsible and transparent in the way that they record tax revenues.
“We have been working behind the scenes for years knowing there would be a day when the problems created by a highly regulated and taxed, cash-based industry would need an all-encompassing solution,” says Terry Patton, Chairman and Founder of CannaTrac.
“Our intent is to get our system in place and transacting imminently so that we can demonstrate that an optimal solution exists, and that satisfies everyone’s needs.”
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